Massachusetts DOR Issues Technical Information Release Regarding Manufacturing Corporation Treatment for Standardized Computer Software Developer

The Massachusetts Department of Revenue (DOR) July 11 issued a technical information release regarding manufacturing corporation treatment for a developer of standardized computer software, for corporate income, property, and sales and use tax purposes. The Appellate Tax Board previously ruled that a taxpayer was engaged in manufacturing and should be classified as a manufacturing corporation. The DOR explained its position that the determination as to whether a corporation is selling services or standardized software will depend upon the facts and circumstances of each case. The DOR further concluded that: 1) a manufacturing corporation is entitled to a local property tax ...